TaxTMI 
TaxTMI 
2026 (2) TMI 982
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....A)"], dated 13.10.2025, arising out of the penalty order passed under section 272A(1)(d) of the Act dated 22.08.2024 for Assessment Year 2022-23. Facts of the Case 2. The assessee is a Securitisation Trust and a Special Purpose Entity/Vehicle as defined under 115TCA of the Act. For the Assessment Year 2022-23, it filed its return of income under section 139(1) of the Act on 30.07.2022 declaring total income at Rs. 0/-.The case was selected for scrutiny. Notice under section 143(2) was issued on 02.06.2023. Subsequently, notice under section 142(1) dated 28.08.2023 was issued calling for details. According to the Assessing Officer, the said notice was not complied with. A centralized communication letter was also sent to the assessee o....
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....1)(d) of the Act, has been passed by both the Learned AO and upheld by the Learned NFAC without granting the Appellant an opportunity of personal hearing to present the case, despite specific requests made for a hearing via video conferencing at both stages of the proceedings, thereby violating the principle of natural justice. 3. Ground No. 3: Inconsistent with the Taxpayers' Charter On the facts and in the circumstances of the case, as well as in law, the order passed by the Learned NFAC is inconsistent with the principles laid out in the Taxpayers' Charter. The Charter says that the Department shall provide prompt, courteous, and professional assistance in all dealings with the taxpayer, and the Department shall collect....
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....rate nor wilful but occurred due to bona fide and reasonable causes beyond the control of the assessee. 7. The learned AR submitted that the notices were sent to certain email IDs such as [email protected] and [email protected], which did not belong to the assessee but were mentioned in the ITR by the trust auditor. The assessee was unaware of these email IDs and, therefore, did not receive the notices. It was submitted that due to restrictions on the number of PAN/TAN registrations linked to a single email ID and mobile number, multiple email IDs had to be created and maintained. Given the volume of trusts handled and the limited shelf life of securitisation trusts, tracking all such credentials became difficult. 8. The....
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....nder section 272A(1)(d) only for one instance of non-compliance. Thus, according to the learned DR, the levy of penalty of Rs. 10,000/- is reasonable and cannot be said to be excessive or arbitrary. 11. We have carefully considered the rival submissions and perused the material available on record, including the assessment order, the penalty order passed under section 272A(1)(d) dated 22.08.2024, and the appellate order passed under section 250 dated 13.10.2025. 12. At the outset, it is noted that the penalty has been levied for alleged non-compliance with notice issued under section 142(1) dated 28.08.2023 during the course of assessment proceedings for A.Y. 2022-23. It is further evident from the record that though there were multip....
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.... has not been disputed. The assessee has further demonstrated that upon becoming aware of the notices, it promptly consulted the auditor, gathered details, and filed submissions. The penalty show cause notices were duly responded to, written submissions were filed on multiple dates, and even a video conference hearing was attended. The assessment itself was completed ex parte under section 144 read with section 144B on 09.03.2024 and the substantive issue relating to exemption under section 10(23DA) was carried in appeal. The penalty proceedings are thus ancillary and arise only from procedural default. 15. It is a settled principle that penalty under section 272A(1)(d) is not automatic. Section 273B clearly provides that no penalty shal....